|Impacts of BEA Revisions on Real Gross Domestic Product and National Domestic Product. Source: Bureau of Economic Analysis|
July 31, 2013
Methodological changes introduced with the latest Department of Commerce report on GDP growth show a somewhat different picture of the economy over recent decades. Including research and development and other intangibles as capital increases GDP by roughly 3.0 percentage points compared with prior measurements. However, the increase in the measured size of the capital stock also means that there will be more depreciation. The new measure added $250 billion to depreciation in the corporate sector for 2012.
For more, check out our latest GDP Byte.